From an update from Early Retirement Club by Mitchell Weijerman.
Hello all,
I hope you had a great weekend. I know that many of you probably wake up with a smile every day after looking at your crypto portfolio. It’s an amazing feeling to wake up richer every day… Isn’t it?
Now it is also important to ask yourself one of the most important questions that every crypto investor should ask themselves…
Inhoudsopgave
- 1 Indicator #1: The MVRV Z-Score:
- 2 Indicator #2: The Pi-Cycle Top Indicator
- 3 Indicator #3: The RHODL ratio
- 4 Indicator #4: NUPL
- 5 Indicator #5: The 2-year MA multiplier
- 6 Indicator #6: The Puell Multiple
- 7 Indicator #7: The Stock-2-Flow Model
- 8 Market Indicator #8: The Rainbow Chart
- 9 Bonus indicator: Google Trends
When do I take profit?
In this week’s update I’m going to share MY game plan. This doesn’t mean it has to be YOUR game plan. I’m sharing this as an example of how I think so you can make your own plan. In the program I emphasize the importance of looking at proven market indicators.
Would you like to learn these kinds of insights yourself, just like Mitchell Weijerman? Then check out his investor training called Early Retirement Club. There is even a course specifically focused on crypto. Read more in the review:
Why?. The price of Bitcoin in itself says nothing about the health of the market. I compare this to sailing on the open ocean… Without a compass you don’t know whether you are sailing north, west, south or east. Likewise, without market indicators you don’t know if the market is overheated or not. The next thing that’s important to understand is that I am a long-term investor.
I follow the cycles from bottom to top. I am not a day trader who speculates on short-term price movements. That’s a big difference. We could see a local top in the Bitcoin market after which we could see a major correction. But I’m not interested in timing a local summit. I’m interested in timing the top of the 4 year cycle.
How can you see the top of a market cycle? I use 8 proven market indicators for this. I’m looking for confirmation of at least 3 out of 8 before cashing in my crypto.
Indicator #1: The MVRV Z-Score:
This indicator is still far from the red box. This means that there is still more room for the Bitcoin price to rise.
Indicator #2: The Pi-Cycle Top Indicator
The orange line has not yet crossed the green line. This indicates that there is still a lot of room for growth.
Indicator #3: The RHODL ratio
The RHODL ratio indicator is not yet near or in the red zone. This indicates that there is still a lot of room for Bitcoin to grow.
Indicator #4: NUPL
This indicator indicates that more than 60% of Bitcoin holders now have net profits . To me that is a (weak) signal of a top ✅. When it approaches 70-80 % , it is a strong signal of a top.
Indicator #5: The 2-year MA multiplier
The Bitcoin price has not yet touched the red line. This shows that there is much more room for Bitcoin to grow.
Indicator #6: The Puell Multiple
The Puell indicator has not yet reached the red zone. This shows that there is much more room for Bitcoin to grow.
Indicator #7: The Stock-2-Flow Model
Bitcoin’s usual peak is when the line turns yellow. We’re not there yet.
Market Indicator #8: The Rainbow Chart
This graph shows that we are not yet in extreme greed. So this chart also shows that there is still a lot of room for Bitcoin to rise.
Bonus indicator: Google Trends
Search volume for Bitcoin is still relatively low compared to previous market peaks. This means that the masses are not yet active in the market. This quick analysis shows that we are still far from a top in the crypto market cycle.
HOWEVER, this also means we could see a local top soon and even a possible cooldown. But this is much more difficult to predict and remains pure speculation.
I hope you enjoyed this update.!
Have a nice week!
Yours sincerely,
Mitchell Weijerman Founder,
Early Retirement Club
